How insurance can help seasonal businesses during uncertain times

Following a severe weather event, the recovery process is hardly ever easy. However, if small and medium-sized business owners do not have the right property insurance in place, it can be even more difficult to reopen for customers.

For example, some businesses are seasonal, or will see higher revenue during certain parts of the year. What happens if severe weather strikes? Or if a cyber criminal hacks into the computer system? With regular customers only coming through the door during certain months, it is crucial to have a comprehensive commercial property insurance policy.

New Jersey was especially hard hit from Hurricane Sandy. Many individuals opt to rent beach houses for weeks or months when the weather is warm enough. However, as the New York Times reported, some beaches in the Northern part of the state have been shortened by 30 or 40 feet. Additionally, many homes are unrentable, forcing some customers to search for options farther south.

The Times said that places like Ortley Beach, Deauville Beach and Normandy Beach saw 90 percent of their rental properties disappear. The entire state is figuring out if the Jersey shore will be ready for the summer, as rentals are key to the shore's economy - it generates half of the state's $40 billion tourism market.

Tim O'Shea is a broker who lost his own home and two rental units in Ortley Beach from the storm.

"I think people will rent more out of 'We want to support the rebuilding,' rather than 'It's going to be a great summer,'" he said. "People don't have a lot of faith in the fact that there's going to be much of a summer."

While an insurance policy does not guarantee that nothing bad will ever happen, it will make the recovery process easier for business owners and help them pay for any necessary repairs.